Gross margin

Gross margin is the difference between revenue and cost of goods sold. In other words, it's a measure of how much profit a company makes from each sale. The higher the gross margin, the more profitable the company.

To calculate gross margin, simply take your total revenue and subtract your total costs. This will give you your gross profit.

From there, divide your gross profit by your total revenue to get your gross margin percentage.

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Category:Accounting